Don't get too disappointed, Square Enix has canceled the blood-fueled third person shooter Gun Loco. There was no reason given for the cancelation, but they seriously didn't think a game about a psycho who likes to wear rabbit heads and kill for kicks would sell?...
You only have to look at the trailer below and see that any marketing machine in the world would be hard pressed to sell the idea, let alone make it AAA. I think Square Enix should stick to what they know, like fantasy RPG's. Then again, after the disappointing Final Fantasy XIII, you have to question what is going on over there.